While the frozen short-term market leaves many jurisdictions searching for funding alternatives to help meet immediate cash-flow needs, Puerto Rico officials said the island has the liquidity in place to ride out current market instability and wait for better borrowing rates.

The Government Development Bank for Puerto Rico, the commonwealth's financing arm, will postpone two transactions originally set for this month, a $1 billion tax and revenue anticipation note deal with Wachovia Bank NA as underwriter and a $400 million new-money Puerto Rico Municipal Finance Agency sale with Merrill Lynch & Co. as book-runner.

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